Ethereum: Will ETFs push ETH to $4K or drag it down to $2.4K?

• Analyst warns that ETH may dump to $2.4K after ETF launch 
• One other market observer blamed macro situations, BTC and SOL, for ETH’s damaging sentiment. 

Expectations of the Ethereum [ETH] ETF have been low, and analysts have had blended views on the subject. 

As of press time, ETH retreated to a low of $3.2K, an 18% drop from its current excessive of $3.9K after the partial approval of ETFs in late Might. 

With solely days to doable ETF launch, Andrew Kang, founding father of crypto fund Mechanism Capital, anticipated ETH to drop additional to $2.4K. A part of his current evaluation read, 

‘Earlier than the ETF launch, I anticipate ETH to commerce from $3,000 to $3,800. After the ETF launch my expectation is $2,400 to $3,000.’

Kang steered that ETH ETF flows might be dismal within the first few weeks for 2 causes.

First, the SEC’s 180-degree pivot and approval in late Might was a shock transfer that restricted the time to persuade giant ETH holders to maneuver to ETF. 

Secondly, Kang cited that transferring to ETF doesn’t include staking yield perks. Consequently, he estimated ETH ETF may appeal to solely 30% of BTC ETF flows within the first six months, roughly about $1.5 – $4.5 billion. 

Different causes for Ethereum’s damaging sentiment

On his half, Quinn Thompson, founding father of crypto hedge fund Lekker Capital, suggested that the damaging ETH sentiment stemmed from being below the shadow of BTC and Solana [SOL]. 

Thompson added that SOL’s repricing relative to ETH strengthened the ‘ETH killer’ narrative. 

‘SOL has repriced 6x increased relative to ETH, so this isn’t as simple of a layup because it was’

Thompson additionally famous that the BTC ETFs and large curiosity in underpriced SOL additional remoted ETH into ‘center youngster syndrome.’ Furthermore, the liquidity crunch made issues worse, 

‘On prime of that, total costs have been stagnant to down for 3 months and market sentiment is within the gutter on account of a macro/liquidity blip.’

Regardless of the damaging sentiment, different analysts, like QCP Capital, maintained a bullish outlook forward of the ETF launch in early July and noted, 

‘ETH bullishness persists with ETH vols buying and selling at an 18% premium to BTC in expectation of an imminent ETH spot ETF launch.’

QCP analysts had beforehand projected a retest of $4K was doable after the ETF launch. As of press time, ETH traded at $3.2K, and it stays to be seen how ETF will decide volatility and worth course.